Category: UNCATEGORIZED

15 Aug 2019

Flower delivery startup UrbanStems raises $12M to fund national expansion

UrbanStems is announcing that it has raised $12 million in Series B funding.

CEO Seth Goldman told me the startup has already been using the money to expand nationally. He explained that UrbanStems now has two delivery models — there are bike couriers who deliver plants and flowers within two hours in New York City and Washington, D.C. (where the company is headquartered), and then there’s a third-party shipping partner who offers next-day delivery to anywhere else in the United States.

The company started out with bike couriers, and Goldman said it’s not abandoning that strategy: “We will find areas where there’s enough demand to warrant jumping in, boots on the ground.”

At the same time, he said next-day shipping has allowed the company “grow a lot faster in the short term.” (Regardless of method, UrbanStems does not charge an extra delivery fee.)

Recent initiatives include a partnership with Vogue, with bouquets created by Vogue editors. In addition, the company has been expanding beyond flowers (where prices start at $35) and plants ($50) by offering curated gift boxes ($55). It sounds like Goldman has plans to do more in this area, too.

“The gifting market is far bigger than just the flower market,” he said. “We are providing more than a product … Gifting itself is a highly emotional, vulnerable experience. [You want to] make sure it gets there successfully, make sure it gets there on-time, make sure they love it, it’s packaged well, every little detail feels personal and special.”

The round was led by SWaN & Legend Venture Partners (who also led the startup’s $6.8 million Series A) and Motley Fool Ventures, with participation from Middleland Capital, NextGen Venture Partners and Sagamore Ventures.

“We are excited to continue to invest in the growth of UrbanStems,” said SWaN & Legend Managing Director David Strasser in a statement. “We continue to be impressed with the team led by Seth Goldman, as he builds on the strong foundation the cofounders laid out in building the pre-eminent gifting platform of the future.”

The funding came after a leadership change at the company, with Goldman (who joined as COO in 2017 after serving as CEO for HelloFresh USA) taking over the chief executive role from co-founder Ajay Kori in May of last year.

When asked about the transition, Goldman noted that Kori remains involved as chairman of the board, and he said, “We partnered a lot on this and kept our team from making it feel like it was a huge deal — which is a weird thing to say, even though it is a huge deal. But I was already managing more than half of the headcount of entire team across the company … so they knew what they were getting with me as a leader.”

15 Aug 2019

UPS takes minority stake in self-driving truck startup TuSimple

UPS said Thursday it has taken a minority stake in self-driving truck startup, TuSimple, just months after the two companies began testing the use of autonomous trucks in Arizona.

The size of minority investment, which was made by the company’s venture arm UPS Ventures, was not disclosed. The investment and the testing comes as UPS looks for new ways to remain competitive, cut costs and boost its bottom line.

TuSimple, which launched in 2015 and has operations in San Diego and Tucson, Arizona, believes it can deliver. The startup says it can cut average purchased transportation costs by 30%.

TuSimple, which is backed by Nvidia, ZP Capital and Sina Corp., is working on a “full-stack solution,” a wonky industry term that means developing and bringing together all of the technological pieces required for autonomous driving. TuSimple is developing a Level 4 system, a designation by the SAE that means the vehicle takes over all of the driving in certain conditions.

An important piece of TuSimple’s approach is its camera-centric perception solution. The system has a vision range of 1,000 meters, the company says.

The days of when highways will be filled with autonomous trucks are years away. But UPS believes it’s worth jumping in at an early stage to take advantage of some of the automated driving such as advanced braking technology that TuSimple can offer today.

“UPS is committed to developing and deploying technologies that enable us to operate our global logistics network more efficiently,” Scott Price, chief strategy officer at UPS said in a statement. “While fully autonomous, driverless vehicles still have development and regulatory work ahead, we are excited by the advances in braking and other technologies that companies like TuSimple are mastering. All of these technologies offer significant safety and other benefits that will be realized long before the full vision of autonomous vehicles is brought to fruition — and UPS will be there, as a leader implementing these new technologies in our fleet.”

UPS initially tapped TuSimple to help it better understand how Level 4 autonomous trucking might function within its network. That relationship expanded in May when the companies began using self-driving tractor trailers to carry freight on a freight route between Tucson and Phoenix to test if service and efficiency in the UPS network can be improved. This testing is ongoing. All of TuSimple’s self-driving trucks operating in the U.S. have a safety driver and an engineer in the cab.

TuSimple and UPS monitor all aspects of these trips, including safety data, transport time and the distance and time the trucks travel autonomously, the companies said Thursday.

UPS isn’t the only company that TuSimple is hauling freight for as part of its testing. TuSimple has said its hauling loads for for several customers in Arizona.  The startup has a post-money valuation of $1.095 billion (aka unicorn status).

15 Aug 2019

Instagram says growth hackers are behind spate of fake Stories views

If you use Instagram and have noticed a bunch of strangers watching your Stories in recent months — accounts that don’t follow you and seem to be Russian — well, you’re not alone.

Nor are you being primed for a Russian disinformation campaign. At least, probably not. But you’re right to smell a fake.

TechCrunch’s very own director of events, Leslie Hitchcock, flagged the issue to us — complaining of “eerie” views on her Instagram Stories in the last couple of months from random Russian accounts, some seemingly genuine (such as artists with several thousand followers) and others simply “weird” looking.

A thread on Reddit also poses the existential question: “Why do Russian Models (that don’t follow me) keep watching my Instagram stories?” (The answer to which is: Not for the reason you hope.)

Instagram told us it is aware of the issue and is working on a fix.

It also said this inauthentic activity is not related to misinformation campaigns but is rather a new growth hacking tactic — which involves accounts paying third parties to try to boost their profile via the medium of fake likes, followers and comments (in this case by generating inauthentic activity by watching the Instagram Stories of people they have no real interest in in the hopes that’ll help them pass off as real and net them more followers).

Eerie is spot on. Some of these growth hackers probably have banks of phones set up where Instagram Stories are ‘watched’ without being watched. (Which obviously isn’t going to please any advertisers paying to inject ads into Stories… )

A UK social media agency called Hydrogen also noticed the issue back in June — blogging then that: “Mass viewing of Instagram Stories is the new buying followers of 2019”, i.e. as a consequence of the Facebook-owned social network cracking down on bots and paid-for followers on the platform.

So, tl;dr, squashing fakes is a perpetual game of whack-a-mole. Let’s call it Zuckerberg’s bane.

“Our research has found that several small social media agencies are using this as a technique to seem like they are interacting with the public,” Hydrogen also wrote, before going on to offer sage advice that: “This is not a good way to build a community, and we believe that Instagram will begin cracking down on this soon.”

Instagram confirmed to us it is attempting to crack down — saying it’s working to try to get rid of this latest eyeball-faking flavor of inauthentic activity. (We paraphrase.)

It also said that, in the coming months, it will introduce new measures to reduce such activity — specifically from Stories — but without saying exactly what these will be.

We also asked about the Russian element but Instagram was unable to provide any intelligence on why a big proportion of the fake Stories views seem to be coming from Russia (without any love). So that remains a bit of a mystery.

What can you do right now to prevent your Instagram Stories from being repurposed as a virtue-less signalling machine for sucking up naive eyeballs?

Switching your profile to private is the only way to thwart the growth hackers, for now.

Albeit, that means you’re limiting who you can reach on the Instagram platform as well as who can reach you.

When we suggested to Hitchcock she switch her account to private she responded with a shrug, saying: “I like to engage with brands.”

15 Aug 2019

Amazon launches a new program to donate unsold products from third-party sellers to charity

Amazon will make it easier and more affordable for its third-party sellers to donate of their unwanted excess inventory and returns, rather than having the items sent back or destroyed. The company on Wednesday announced the launch of a new program, Fulfillment by Amazon (FBA) Donations, which will distribute excess and returned products to charitable organizations.

CNBC first reported the news, which was also confirmed by Amazon through a brief post on its corporate blog.

The program’s launch follows a series of news reports earlier this year, which found that Amazon warehouses routinely trashed millions of unsold items. One smaller facility in France was even found to have sent 293,000 items to a local dump during a 9-month period. A French TV documentary also claimed that Amazon destroyed over 3 million products last year.

The documentary had secretly filmed Amazon workers loading up brand-new toys, kitchen equipment, and flat-screen TVs for transport to the dump, a report said.

While it’s an unfortunately common retail practice to destroy excess or unwanted inventory or returned items — particularly in luxury apparel — at Amazon’s scale, the issue is compounded. In addition, the items being destroyed could make a real impact on people’s lives.

Amazon says it will begin donating products from sellers starting in September in the U.S. and U.K. with the help of charity partners. In the U.S., it’s working with Good360, an organization that partners with retailers and consumer goods companies to source and distribute highly needed products through a network of diverse nonprofits. In the U.K., Amazon is working with NewlifeSalvation Army, and Barnardo’s.

Sellers told CNBC the new program makes it cheaper to donate than to dispose or ask for items to be returned, where Amazon charges 50 cents and 15 cents, respectively. The program will also be the new default for sellers, though they can choose to opt-out, if desired.

“We know getting products into the hands of those who need them transforms lives and strengthens local communities,” said Alice Shobe, Director, Amazon in the Community, in a statement about the program’s launch. “We are delighted to extend this program to sellers who use our fulfillment services.”

The company also told CNBC that it’s working to bring the number of destroyed items to zero, and said the “vast majority” of returns were resold to other customers, liquidators, returned to suppliers, or donated to charities, depending on their condition.

15 Aug 2019

Kitty Hawk’s Flyer personal VTOL has now flown over 25,000 times

Flying cars, or at least their functional equivalent, edge closer to reality every day – and startup Kitty Hawk wants you to know it’s putting in the flying time to make it happen. The company, led by former Google self-driving car visionary Sebastian Thrun, has now flown its first aircraft, the one-person Flyer, over 25,000 times. That includes both its excursions as a prototype that resembled a flying motorcycle or ATV, and in its current, more refined, mostly enclosed cockpit design.

Flyer is now one of two aircraft that Kitty Hawk is working on bringing to market, alongside its Cora two-person, autonomous taxi built in collaboration with Boeing. Flyer is a one-person, human piloted aircraft designed primarily for recreational use, and Kitty Hawk has said it’s refined the vehicle to the point where someone with no experience can learn to fly it in 15 minutes. The company is currently looking for applications for potential partners who want to deploy it in their communities, and it does seem like the type of thing that might do well as an organized excursion activity at a travel destination or resort.

There’s no info on pricing or actual availability yet, but there was a limited Founder Series pre-order for individual purchasers with deep pockets. The aircraft features pontoons and is designed for use over water, and it can fly between three and 10 ft above the surface with vertical take-off and landing capabilities.

Personally, I’d probably opt for the flying jet-ski over paragliding if it was on offer at a vacation spot, so here’s hoping this actually finds a path to commercialization somewhat soon.

15 Aug 2019

Birth control delivery startup Nurx approaches $300M valuation

Nurx, citing 200,000 current patients and a monthly growth rate as high as 20%, has raised $32 million in Series C equity funding in a round co-led by existing investors Kleiner Perkins and Union Square Ventures. The company has also secured $20 million in debt, bringing total new capital to $52 million.

The San Francisco-based digital health startup, which seeks to make birth control more accessible and affordable by shipping it direct to consumer, has raised more than $90 million in debt and equity funding to date, with the latest infusion bringing its valuation to nearly $300 million, according to stock authorization filings uncovered by PitchBook. Nurx declined to comment on its valuation.

The goal, Nurx chief executive officer Varsha Rao explains, is to become a telehealth platform focused on all sensitive health needs.

“We see there is a need to help people that may have issues that often carry stigma and judgment by providing a streamlined platform,” Rao tells TechCrunch. “What the company is doing in terms of providing more accessibility form a physical and economic perspective to critical health services is very inspiring for me.”

The fresh bout of funding comes four months after a scathing New York Times report highlighted irresponsible practices at the company, including reshipping returned medications and attempting to revise medical policy on birth control for women over the age of 35.

Nurx’s Rao, who joined from Clover Health just one week before the article was published, says she feels good about how the company has scaled: “I want to make it clear, patient safety was never at risk even then; having said that, we are super committed to always investing in compliance and patient safety and all of the things that are important.”

The business plans to use the funding to double its engineering team and launch additional “sensitive” healthcare services of which Rao declined to further outline. In addition to shipping birth control D2C, including the pill, shot, ring and patch, Nurx provides emergency contraception, STI and HPV testing and screening kits, and PrEP medication, the once-daily pill that reduces the risk of getting HIV.

The company added STI testing kits to its line up last month and has since performed tests for 1,000 patients, Nurx says.

Nurx’s service is currently live in 26 states and Washington, D.C. The company plans to be accessible to 90% of the U.S. population by the end of the year, with additional launches, including the state of Nebraska, expected this month.

A graduate of Y Combinator, Nurx investors also include Reproductive Health Investors Alliance, Dreamers VC, Lowercase Capital and debt & equity provider Triple Point Capital.

15 Aug 2019

The New Soundboks is a massive, pro-level, battery-powered Bluetooth speaker

The new Soundboks is impressive. It has everything: a sturdy housing, Bluetooth, large battery, XLR-inputs, and several methods to connect multiple Soundboks. Indoor or out, the new Soundboks sounds great.

The Soundboks isn’t shy. It’s an extrovert. This speaker will stand tall among strangers and be the loudest in the room. It doesn’t try to compensate for lackluster sound with a quirky design, either. There’s nothing fancy to the style of the Soundboks 2, and to me, that’s part of its appeal. This speaker is here to party.

Quick note: This product is called the new Soundboks. It’s the third speaker from the company and it doesn’t follow the current naming scheme. The last previous version was called the Soundboks 2 yet this one is called the new Soundboks. The naming is a touch confusing.

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Click the speaker on and the new Soundboks comes alive. There are two 10-inch woofers and one compression driver tweeter. Together the company says it they produce 126 dB of noise, which I found is mostly free of distortion at high volumes. This speaker sounds great at moderate volumes. When cranked up, it still sounds good enough as the dual woofers pound and rattle windows.

Three 72W class D amplifiers live inside the plywood cabinet. That’s key and explains the endless power. Forgive the cliche: this speaker goes to 11 and does so on a battery
A large removable 12.8V, 7.8Ah battery lives on the side of the speaker. The company says it’s good for 40 hours of listening. I cannot confirm it lasts that long but I know it’s good for at least 10 hours at moderate volume.

This battery is what makes the Soundboks stand apart from other speakers. It opens up opportunities. This is portable loudspeaker. The company knows this, too, and sells accessories such as a backpack and cart to assist in getting the 34 lbs speaker to the party no matter the location.

This latest version of the speaker packs a couple upgrades from previous models. First, it sports Bluetooth 5.0 for improved audio quality and connectivity. The new speaker can also be daisy chained to five other Soundboks speakers either through wires or Bluetooth.

Connecting several together is silly easy. I was sure I did something wrong and reset all the settings to test it again. But no: It just works. First, connect one of the speakers to Bluetooth. On the side of the speakers is a large red button to put the speaker in solo or multi-speaker mode. Select host on the speaker connected over Bluetooth and join on the other speaker. Bam. Two loud speakers. Or the speakers can be connected with 3.5mm or XLR cables.

Soundboks was founded in 2014 and participated in Y Combinator’s Winter 2016 program. The company saw $13.5 million in revenue in 2018 and sold over 50,000 of its first two products. 

In the end, not everyone needs a speaker the size of a Coleman cooler. This is a big speaker with a big $999 price. It’s a party speaker. It’s for sports teams and house parties and tailgates. And in those situations, the Soundboks excels because of its power, portability and ability to link more speakers together. It’s a party in a box and I love it.

15 Aug 2019

Incorta raises $30M Series C for ETL-free data processing solution

Incorta, a startup founded by former Oracle executives who want to change the way we process large amounts data, announced a $30 million Series C today led by Sorenson Capital.

Other investors participating in the round included GV (formerly Google Ventures), Kleiner Perkins, M12 (formerly Microsoft Ventures), Telstra Ventures and Ron Wohl. Today’s investment brings the total raised to $75 million, according to the company.

Incorta CEO and co-founder Osama Elkady says he and his co-founders were compelled to start Inccorta because they saw so many companies spending big bucks for data projects that were doomed to fail. “The reason that drove me and three other guys to leave Oracle and start Incorta is because we found out with all the investment that companies were making around data warehousing and implementing advanced projects, very few of these projects succeeded,” Elkady told TechCrunch.

A typical data project of involves ETL (extract, transform, load). It’s a process that takes data out of one database, changes the data to make it compatible with the target database and adds it to the target database.

It takes time to do all of that, and Incorta is trying to give access to the data much faster by stripping out this step. Elkady says that this allows customers to make use of the data much more quickly, claiming they are reducing the process from one that took hours to one that takes just seconds. That kind of performance enhancement is garnering attention.

Rob Rueckert, managing director for lead investor Sorenson Capital sees a company that’s innovating in a mature space. “Incorta is poised to upend the data warehousing market with innovative technology that will end 30 years of archaic and slow data warehouse infrastructure,” he said in a statement.

The company says revenue is growing by leaps and bounds, reporting 284% year over year growth (although they did not share specific numbers). Customers include Starbucks, Shutterfly and Broadcom.

The startup, which launched in 2013, currently has 250 employees with developers in Egypt and main operations in San Mateo, California. They recently also added offices in Chicago, Dubai and Bangalore.

15 Aug 2019

Microsoft tweaks privacy policy to admit humans can listen to Skype Translator and Cortana audio

Microsoft is the latest tech giant to amend its privacy policy after media reports revealed it uses human contractors to review audio recordings of Skype and Cortana users.

A section in the policy on how the company uses personal data now reads (emphasis ours):

Our processing of personal data for these purposes includes both automated and manual (human) methods of processing. Our automated methods often are related to and supported by our manual methods. For example, our automated methods include artificial intelligence (AI), which we think of as a set of technologies that enable computers to perceive, learn, reason, and assist in decision-making to solve problems in ways that are similar to what people do. To build, train, and improve the accuracy of our automated methods of processing (including AI), we manually review some of the predictions and inferences produced by the automated methods against the underlying data from which the predictions and inferences were made. For example, we manually review short snippets of a small sampling of voice data we have taken steps to de-identify to improve our speech services, such as recognition and translation.

The tweaks to the privacy policy of Microsoft’s Skype VoIP software and its Cortana voice AI were spotted by Motherboard — which was also first to report that contractors working for Microsoft are listening to personal conversations of Skype users conducted through the app’s translation service, and to audio snippets captured by the Cortana voice assistant.

Asked about the privacy policy changes, Microsoft told Motherboard: “We realized, based on questions raised recently, that we could do a better job specifying that humans sometimes review this content.”

Multiple tech giants’ use of human workers to review users’ audio across a number of products involving AI has grabbed headlines in recent weeks after journalists exposed a practice that had not been clearly conveyed to users in terms and conditions — despite European privacy law requiring clarity about how people’s data is used.

Apple, Amazon, Facebook, Google and Microsoft have all been called out for failing to make it clear that a portion of audio recordings will be accessed by human contractors.

Such workers are typically employed to improve the performance of AI systems by verifying translations and speech in different accents. But, again, this human review component within AI systems has generally been buried rather than transparently disclosed.

Earlier this month a German privacy watchdog told Google it intended to use EU privacy law to order it to halt human reviews of audio captured by its Google Assistant AI in Europe — after press had obtained leaked audio snippets and being able to re-identify some of the people in the recordings.

On learning of the regulator’s planned intervention Google suspended reviews.

Apple also announced it was suspending human reviews of Siri snippets globally, again after a newspaper reported that its contractors could access audio and routinely heard sensitive stuff.

Facebook also said it was pausing human reviews of a speech-to-text AI feature offered in its Messenger app — again after concerns had been raised by journalists.

So far Apple, Google and Facebook have suspended or partially suspended human reviews in response to media disclosures and/or regulatory attention.

While the lead privacy regulator for all three, Ireland’s DPC, has started asking questions.

In response to the rising privacy scrutiny of what tech giants nonetheless claim is a widespread industry practice, Amazon also recently amended the Alexa privacy policy to disclose that it employs humans to review some audio. It also quietly added an option for uses to opt-out of the possibility of someone listening to their Alexa recordings. Amazon’s lead EU privacy regulator is also now seeking answers.

Microsoft told Motherboard it is not suspending human reviews at this stage.

Users of Microsoft’s voice assistant can delete recordings — but such deletions require action from the user and would be required on a rolling basis as long as the product continues being use. So it’s not the same as having a full and blanket opt out.

We’ve asked Microsoft whether it intends to offer Skype or Cortana users an opt out of their recordings being reviewed by humans.

The company told Motherboard it will “continue to examine further steps we might be able to take”.

15 Aug 2019

Huawei pushes back launch of 5G foldable, the Mate X

If you were desperately ripping days off of your calendar until you could get your hands on Huawei’s $2,600 5G foldable, the Mate X — which was originally slated to launch next month — it sounds like you’re going to have to wait a bit longer, per TechRadar which attended a press event at Huawei’s Shenzhen headquarters today. 

It reports being told there is no possibility of a September launch. Instead Huawei is now aiming for November. But the company would only profess itself certain its first smartphone that folds out to a (square) tablet will launch before 2020. So it seems Mate X buyers may need to wait until circa Christmas to fondle this foldable.

It’s not clear exactly why the launch is being delayed. But — speculating wildly — we imagine it’s something to do with the fact that the screen, er, folds.

We’ve reached out to Huawei for official comment on the delay.

Huawei’s Mate X date slippage suggests Samsung will still be first to market with its (previously) delayed Galaxy Fold — which was itself delayed after a bunch of review units broke (because, well, did we tell you the screen folds?).

Last we heard, the Galaxy Fold is slated for a September release — Samsung seemingly confident it’s fixed the problem of how to make a foldable phone survive actual use.

Of course survival in the wild very much remains to be seen with any of these foldable. So expect TC’s in house hardware guru, Brian Heater, to put all of these expensively hinged touchscreens through their paces.

Returning to Huawei’s Mate X, potential buyers may not be entirely reassured to learn the company appeared to dangle rather more information about a planned sequel in front of reporters at the press event.

A sequel which may or may not have even more screens, as Huawei is apparently considering putting glass on the back. Yes, glass. (The gen-one Mate X will have a steel back.) Glass panels which it says could double as touchscreens. On the back. As well as the front. We have no idea if that means the price-tag will double too.

This theoretical quad (?) screen foldable follow-up to the still unreleased Mate X might even be released as soon as next year, according to TechRadar’s reportage. Or — again speculating wildly — it might never be released. Because, frankly, it sounds mental. But that’s the wacky world of foldables for ya.

There may be method in this madness too. Because, since smartphones turned into all-screen devices — making it almost impossible to tell one touch-sensitive slab from another — plucky Android device makers are trying to find a way to put more screen on the slab so you can see more.

If they can pull that off it might be great. However sticking a hinge right through the middle of a smartphone’s primary feature and function without that simultaneously causing problems is certainly a major engineering challenge.